Lateral entry option for government banks too?

Ideal candidates, according to the official, are CFOs and those with financial management background.

Published: 19th June 2018 06:51 AM  |   Last Updated: 19th June 2018 08:17 AM   |  A+A-


Image for representational purpose only. (File photo | Reuters)

Express News Service

NEW DELHI: After its recent move to allow private-sector professionals to join top bureaucracy as joint secretaries, the government is now planning lateral hiring in public-sector banks for mid- and top-level positions.

“The hunt for top executives is on. The task is more difficult than it appears. We are also considering the possibility of allowing lateral hiring. It will not only widen the talent pool but will also infuse fresh leadership thought for PSB, which is the need of the hour,” a member of the Banks Board Bureau told TNIE.

Ideal candidates, according to the official, are CFOs and those with financial management background.
The newly constituted BBB headed by former DoPT Secretary B P Sharma is tasked with shortlisting candidates for top vacancies in the public sector banks.

Around 30 top-level vacancies — 12 managing directors and 18 executive directors – are to be filled this fiscal. The BBB’s task is cut out as interim finance minister Piyush Goyal wants the posts to be filled within one month.

Some of the top names for replacement include Allahabad Bank CEO & MD Usha Ananthasubramanian who was named by the CBI in the Nirav Modi case and Indian Bank chief Kishor Kharat and Syndicate Bank boss Melwyn Rego, who were allegedly involved in the IDBI Bank fraud case.

The BBB is also seeking replacements for PNB executive directors Rajiv Sharan and K V Brahmaji Rao, who have been linked to the Nirav Modi case, and Subroto Gupta, executive director of IDBI, linked to the IDBI fraud case.

Also, banks are looking for replacements for many non-performing executives responsible for bloating NPAs.

In this context, the Board is having a tough time finding the right candidates with an impressive track record as well as clean image.

“Lateral hiring has to be a collective decision between BBB and RBI,” another official told TNIE.

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